Property market fuels millionaire boom in Australia

A sharp increase in property and share prices is behind a steep rise in the number of wealthy individuals in Australia, according to new data from consulting firm Capgemini.

The World Wealth Report 2017 found that last year, the number of wealthy Australians – categorised as individuals with a minimum of $US1 million ($AU1.28 million) in assets outside their home – rose nine percent to 255,000.

"A very significant proportion of their wealth can be attributed [to] their equities investment portfolios," Phil Gomm, Capgemini’s head of financial services for Australia and New Zealand, told Fairfax Media.

Considering the higher commodity prices, higher savings rates and further rises in property prices, Gomm predicts that the number of wealthy Australians could grow even faster in 2017.

Capgemini’s 2017 report explores trends that affect high net worth individuals across 71 countries, accounting for more than 98 percent of global gross national income and 99 percent of world stock market capitalisation.